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2019 Government Work Report: What the experts say

By Tan Xinyu | chinadaily.com.cn | Updated: 2019-03-08 06:40
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Tax cuts

Employees work on the production line of a BAIC vehicle factory in Cangzhou, Hebei province. The automobile industry is considered key to Cangzhou's development. [Photo/Xinhua]

China plans to pursue a proactive fiscal policy with greater intensity and enhance its performance this year, with a deficit-to-GDP ratio projected at 2.8 percent and budgetary deficit at 2.76 trillion yuan, of which the central government deficit is 1.83 trillion yuan and the remainder with local governments.

And 2.15 trillion yuan of special local government bonds will also be issued, an increase of 800 billion yuan from last year.

Li Chao, chief economist at Huatai Securities, said deficit ratio has been raised but are not up to 3 percent. The main focus of fiscal policy is on reducing taxes and fees to improve quality of fiscal leverage, he said, rather than stressing on quantitative aspects as the government did in the past.

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